Wednesday, 26 February, 2020

Tesla Recalls Thousands of Vehicles Over Power Steering Issue

A Tesla Model S and Model X are displayed at a shopping mall in Hong Kong Tesla Recalls Thousands of Vehicles Over Power Steering Issue AFP 2019 VIVEK PRAKASH
Ginger Lawrence | 14 February, 2020, 07:11

In the filing, Tesla noted that CEO Elon Musk has indicated an interest in purchasing up to 13,032 shares valued at approximately $10 million and Tesla board member and Oracle CEO Larry Ellison indicated interest in acquiring 1,303 shares valued at approximately $1 million.

"Diluting the company to pay down debt doesn't sound like a wise move", Musk said on the same call.

Tesla's share price hit the brakes Thursday after the electric vehicle maker said it plans to sell about $2 billion in additional stock. The stock traded up about 2.6% at $787.31 in a 52-week range of $176.99 to $968.99. However, it's not as if the company doesn't have some pretty big expenses to deal with and extra $2 billion might come in handy.

In one complaint, a driver said a 2015 Tesla Model S 85D in California was closed and locked when he claimed 'a few moments later the vehicle started accelerating forward towards the street and crashed into a parked auto'. There is also talk of expanding the plant in China as well as the need to increase battery production at Gigafactory Nevada. "As such, we would argue that TSLA should try to take even greater advantage of the stock price, raise a larger amount of equity to enable more of 're-capitalisation of the company and have enough to fund their growth ambition".

Prince Harry and Meghan Markle fire United Kingdom staff, close Buckingham Palace office
According to the outlet, the royals flew commercial and were greeted by university president Marc Tessier-Lavigne. Prince Harry's last duty as a member of the Royal Marines will be at the Mountbatten Festival of Music next month.

The electric auto maker said it plans to use the proceeds from the offering to strengthen its balance sheet and for general corporate purposes.

Tesla raised about $2.3 billion last May, according to Reuters, to start production in China and spend on developing new models, including the high-volume Model Y SUV and a Semi commercial truck.

According to the company, the concerns are that aluminium bolts between the electric power steering gear assist motor and the gear housing could corrode and break, resulting in a loss of power steering assist. Tesla said the vehicles being recalled include most Model X vehicles built before mid-October 2016, but the move does not affect vehicles built after that date.Tesla issued a similar recall in March 2018 for 123,000 Model S vehicles worldwide built before April 2016 that called for replacing steering assist motor bolts.